1. Which of the following statements is true?

Multiple Choice

a. The market share variance is more controllable by the marketing department than the industry volume variance.

b. The industry volume variance is the portion of the sales activity variance due to a change in the company's proportion of sales in the markets in which they operate.

c. The industry volume variance is likely a better measure of marketing department performance than the market share variance.

d. If the industry volume variance is favorable, the market share variance must also be favorable.

2. The following budgeted information is provided:

Month	1	2	3
Sales in units	15,000	20,000	18,000
Production in units	16,000	22,000	15,000

One pound of materials is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, there were 3,200 pounds of materials on hand. Purchases of raw materials for Month 1 would be (in pounds):

Multiple Choice

25,000.

17,200.

22,000.

23,400.